What are the various advantages and misconceptions of shareholding?

Anyone can involve in stock trading if he has a 股票appSince the habit of trading has become common among the masses, it is vital to have some awareness about it. There are various advantages of buying shares of a company. However, some people are having some misconceptions about the concept. In this article, let us discuss both.

Advantages of becoming a shareholder of a company

Dividends will be attractive

Although not all companies would offer dividends to shareholders, some reputed companies do. A dividend is a part of the annual profit of the company given to its shareholders annually. It will be attractive for the investors as an additional source of income. So, it is a benefit of being a shareholder.

Discounts on company’s products

It is a rare benefit of being a shareholder in the company. Some companies could make some of their products available for their shareholders at a discounted rate at times. However, this habit is not in practice in the majority of companies.

Ownership on a small scale

Although you could not make game-changing decisions on the company’s procedures, you are still a part-owner of it. You will have a small portion of contribution to the company that you could calculate as below.

Number of shares in your holdings/Total shares issued x 100 = percentage of company’s assets in your ownership

If you own a lot of shares of a company, you can have some influence on its operations. So, ownership of a company is highly beneficial when you look at the advantages of being a shareholder.

Annual shareholders meeting

If you own some shares of a company, you could be a part of the annual shareholders’ meetings conducted by the institution. You will get to know about the insider secrets of the company and some more information about the company’s future operations if you attend this meeting. If there are polls in these meetings, you could also vote for the side you like. Some shareholders will have some extra rights on the company depending on their holdings.

Trading profits

Also, you could make some decent money by selling stocks you own in the market. Although investment leaders consider frequent trading as immature, you could make some money by buying stocks at lower prices and selling them off for higher values. So, this is another benefit of owning some shares of the company. It is your responsibility to choose a worthy company and buy shares to make a profit in the future.

Misconceptions of share ownership

There are always some misconceptions about the ownership of the shares of a company among the masses. Beginner shareholders are the people who fool themselves with such misconceptions about the market. Some of these misconceptions are as follows,

  • Some think that they could make vital decisions on behalf of that company
  • They assume that they have rights over all properties owned by the company
  • They are expecting a lot of discounts from the invested companies

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